When it comes to insurance trends to expect in 2020, technology is the main focus. With a rise in the use of artificial intelligence (AI), telematics, robotics, and mobile devices, technology has infiltrated our daily lives - both personally and professionally.
As our insurance experts at Pepper, Johnstone & Company look ahead to what to expect this upcoming year, we outlined five emerging trends for 2020. These 2020 expectations could affect you, your family, and your business.
5 Emerging Insurance Trends for 2020
1. Automation
Will a robot eliminate my job? This sentiment has grown in many industries with the increase of AI and the rise of robotic process automation (RPA) - bots mimicking human tasks. With these concepts in mind, the role of automation definitely is a trend for insurance this year.
As an insurance provider, our goal is to provide our clients with the best service for their needs. While automation will play a role in helping us more quickly to find a solution for our clients, we’re expecting to see an increase in intelligent process automation (IPA). Automation through an IPA system allows insurers to be more productive and use their time to focus on more significant tasks that were once occupied by tedious tasks. So for 2020, you can expect us and those in the insurance industry to be more attentive, responsive, and effective as we implement new technology and systems into our practice.
2. Recession-led consumer changes
Eighty-two percent of insurers claim a recession is coming within the next two years. An impending economic slowdown will result in a drop in consumer spending behavior, which will affect the way consumers interact with businesses. Personal insurance shopping will likely be the main area where consumers try to switch insurers to get the best deals.
In response to or in preparation for these changes, it will be increasingly common in 2020 for insurance companies to prepare portfolios and invest in tech solutions to offer the best service at the best price.
3. Digital risk management
With more and more aspects of business moving online, commercial business will continue digitizing the customer experience. AI is becoming more and more prevalent in all areas of commercial businesses, which increases certain business risks, such as a data breach. As a whole, moving more of the attention of risk management from only physical business elements to digital business elements will increase in 2020. Cyber liability insurance is an increasingly important factor for commercial business insurance.
4. Environmental issues
In 2020, environmental issues will continue to be a central point of concern for consumers. In fact, if your company isn’t helping your consumers improve their environmental and social footprint, then you’re missing out on engaging 88 percent of your consumers.
Consumers expect businesses to focus internally and externally on sustainability and managing resources. Internally, we expect to see a rise in recycling efforts, community clean up and outreach, and reduction of paper use. As a response to ever-increasing natural disasters, an insurance trend many companies are following is increasing proactive measures, such as updating their risk assessments, to ensure safety and reduce the opportunity of injury or property damage.
5. Telematics and auto insurance
A big insurance trend for the auto insurance industry is the use of telematics to gain information about a driver and their potential risk factor. Common telematics uses are used for tracking mileage and monitoring driving behaviors - all in real time.
Telematics could be used for things such as watching your speed to giving fault and damage during a car accident. While insurers may obtain consent before receiving this information, the technology is present and on the rise.
Pepper Johnstone can help you prepare for 2020 insurance trends
At Pepper, Johnstone & Company, we pride ourselves on being local, influential, and responsive. As an independent insurance agency, we take a consultative approach when working with you. We know what types of coverage to shop for because we've established your coverage needs.
Our employees here at Pepper, Johnstone & Company have been in the Alabama area for decades. We love serving as advisors to you and your business, even outside of the realm of insurance. As residents of the Limestone County ourselves, we understand the community and are confident we can provide you with the guidance you need.
Looking ahead to this year, these insurance trends will undoubtedly impact your personal and professional life, as well as your family and business. As you prepare for these trends in the insurance industry, reach out to us here at Pepper, Johnstone & Company.
Pepper, Johnstone & Company is independently owned and locally operated to handle your insurance needs, be it commercial insurance, home insurance, or just general insurance. We focus on Athens and offer affordable and reliable insurance choices all across Alabama, Georgia, Mississippi, North Carolina, South Carolina, Louisiana, and Tennessee. We will help you find the right combination of tailored, personalized insurance coverage at just the right price to fit your needs. Contact us today to learn more about how we can help you.